Gas and oil operators have approached several tribes proposing to use tribal wells for injection and storage of atmospheric carbon dioxide, the final phase of a process known as Carbon Capture and Sequestration (CCS).
BIA trustees have thus far provided no guidance as to the myriad legal and scientific ramifications of these offers. Until they do, we advise slow going.
Carbon is a gas that promotes Climate Change. Hence, it is best viewed as a toxic substance akin to nuclear waste and similar contaminants.
Sadly, Indian Country has too often been treated as a dumping ground for such contaminants. Treatment of uranium waste at Navajo Nation and lead tailings on Quapaw Nation lands in Oklahoma are part of this history.
CCS poses serious risks if the carbon escapes. Not only can that compromise tribal aquifers and hydrocarbon systems, but it can leave the Tribe holding the bag for damages to the surrounding region.
Making the news recently was a monitored Ashland Midland Daniels carbon injection well that leaked in Decatur, Illinois, which has become the second state after California to impose a moratorium on approvals of new carbon pipelines.
We therefore advise Tribes contemplating carbon storage offers to first:
· Determine which area of the reservation where carbon sequestration would occur
· Review well head equipment and bore hole to determine the state of their repair.
· Perform detailed geologic studies for any faults or fractures going to the selected reservoirs
· Conduct engineering studies to determine the amount of carbon that could be stored in the selected reservoirs
· Review the amount of carbon needed in order for the project to be economically feasible
· Determine whether an LLC is needed for the project
· Determine how carbon leakage will be measured and set up the equipment so that a baseline can be established
· Review tribal regulations and laws that might apply to carbon sequestration
· If no regulations exist, consider promulgating them
· Review bonding and determine the amount of money needed for any mitigation and make sure that the amount escalates so that's sufficient of money is available at the end of 50 years
· Determine the Tribe’s liability at the end of 50 years and explore if additional bonding is warranted
· Explore other uses for carbon and its potential economic impact on the reservation
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